After Trump banned American telecommunications companies from working with so-called “high-risk” companies, Huawei finds itself in the midst of turmoil. As a result, the Chinese manufacturer’s sales have dropped sharply and Huawei must revise its ambitions.
Who could have bet on such a scenario just a few months ago? Nobody (or almost nobody). And yet, the reality is there (and it is cruel). The US government’s decision plunged Huawei into a serious crisis. The manufacturer has been forced to completely revise its projections and no longer thinks it can become the world’s number 1 in the mobile phone market, overtaking Samsung, in 2019.
At a press conference in Beijing last January, Richard Yu, CEO of Huawei’s mobile division, boldly stated: “Even without the US market, we will be number one in the world. This is our year. At the latest, we can do it the following year!”. A few months later, the situation has completely changed.
Shao Yang, Head of Strategy at Huawei Group, conceded in a speech at CES Asia in Shanghai: “We would have become the largest in the fourth quarter (of this year) but now we feel that this process may take longer.” While Huawei currently sells between 500,000 and 600,000 smartphones a day, according to Huawei boss, this figure is not enough to worry Samsung and dethrone the South Korean manufacturer.
Huawei will, therefore, have to wait longer to become the world’s number one. If the situation between the United States and China persists, Huawei may never reach the top spot. Indeed, according to several analysts, because of the American sanctions, Huawei’s smartphone deliveries could drop by as much as a quarter this year. Worse still, its survival in Western markets is in danger, unless smartphones with an alternative OS capable of competing with Android are quickly offered.
Do you think Huawei will one day become the world’s number one in front of Samsung? Have your say below!